UNCLASSIFIED September 12, 2007

D E P A R T Weekly M E N T Status Report O F September 12, 2007

S T Bureau of Near Eastern Affairs A US Department of State T E

1 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Table of Contents This report provides weekly updates in the eight key areas identified as pillars D of U.S. government policy for victory in Iraq. E SECTION SLIDE P Highlights 3 A 1. Defeat the Terrorists and Neutralize the Insurgents R 5 T 2. Transition Iraq to Security Self-Reliance 10 M 3. Help Iraqis to Forge a National Compact for Democratic 13 E Government N T 4. Help Iraq Build Government Capacity and Provide Essential 15 Services O 5. Help Iraq Strengthen Its Economy F 20 6. Help Iraq Strengthen the Rule of Law and Promote Civil Rights 28 S 7. Increase International Support for Iraq 29 T 8. Strengthen Public Understanding of Coalition Efforts and A 32 T Public Isolation of the Insurgents E Sources and Contact Information 33 Notes and Source Citations 34

2 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Highlights

1. Defeat the Terrorists and Neutralize the Insurgents D The overall number of security incidents in Iraq has declined in eight of the past 12 E weeks, with the number of incidents in the last two weeks at the lowest levels seen P since June 2006. A 2. Transition Iraq to Security Self-Reliance R Nearly 140 Iraqi Army, National Police and Special Operations Forces battalions are T conducting security operations, with about 95 of those capable of taking the lead in M operations with some Coalition support. E 3. Help Iraqis to Forge a National Compact for Democratic Government N Hours before congressional hearings on the progress of the U.S. military buildup, Iraqi T Prime Minister Nuri al-Maliki addressed the Council of Representatives, saying security had improved dramatically in the capital and Iraq was moving away from civil war. O Maliki gave an optimistic assessment of his country's progress since the U.S. military buildup began in February, noting security gains had been made across Iraq, insisting F his forces needed more time to take over full security responsibility from Coalition forces. S 4. Help Iraq Build Government Capacity and Provide Essential Services T Maliki agreed to dedicate $50 million to control the spread of cholera. The chief A inspector for the Ministry of Health, Dr. Adel Mohsen, denied September 6 that the T disease has spread to Iraq’s central and southern provinces. According to Dr. Mohsen, E cholera has not spread any further than Sulaimaniya and Kirkuk.

3 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Highlights

5. Help Iraq Strengthen Its Economy D Speaking in Baghdad, U.S. Coordinator for Economic Transition Charles Ries said that Iraq’s E economy is likely to grow more than 6% in 2007, and if the oil sector is taken out, will likely be P more than 7%. Ries said that the economy is underperforming, though, due to an inadequate supply of electricity, weakness in the oil sector, capacity constraints, and a lack of foreign and A private investment. R 6. Help Iraq Strengthen the Rule of Law T President Jalal Talabani said September 7 during a press conference in Sulaymaniyah that he M would not sign the execution order of a top Saddam aide whom he personally had “provoked” E to rebel against the executed dictator. If the approval of his three-member presidency is sought N by the Iraqi supreme court, Talabani said he would refuse to sign the order of Sultan Hashim T al-Tai, (senior officer who became defense minister during Saddam’s regime). 7. International Support for Iraq O Prime Minister Gordon Brown’s spokesman said the general approach of the U.S. and the United Kingdom was entirely consistent and that decisions on troop levels would be based on F conditions on the ground and the assessment of the military. Brown had “very cordial and constructive” talks with President Bush September 10. S 8. Strengthen Public Understanding of Coalition Efforts and Public Isolation of the T Insurgents A An insurgent group in Iraq posted a videotape September 10 that showed a German hostage T who has been held for more than six months and threatened to kill him unless Germany E withdrew its troops from within ten days.

4 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[1.] Defeat the Terrorists and Neutralize the Insurgency

General Petraeus’s Situational Report to Congress: D • General David Petraeus, the commanding general of Multi-National Force-Iraq presented E a situational assessment on Iraqi security to Congress September 10-11. General P Petraeus informed Congress that military objectives are, in large measure, being met. A • The overall number of security incidents in Iraq has declined in eight of the past 12 R weeks, with the number of incidents in the last two weeks at the lowest levels seen since T June 2006. M • Civilian deaths of all categories have declined by over 45% Iraq-wide since the height of E the sectarian violence in December 2006 and declined by 70% in Baghdad. N • Iraq-wide, the number of ethno-sectarian deaths has come down by over 55% since T December 2006 and by 80% in Baghdad. • Coalition forces (CF) and Iraqi Security Forces (ISF) have found and cleared over 4,400 O weapons caches so far this year; nearly 1,700 more than the number discovered all of F last year. • In the last eight months, CF and ISF have neutralized five media cells, detained the S senior Iraqi leader of al-Qaida in Iraq, and killed or captured nearly 100 other key leaders T and 2,500 rank-and-file fighters. A • In the last six months, CF and ISF have targeted Shia militia extremists, capturing a T number of senior leaders and fighters, as well as the deputy commander of Lebanese E Hezbollah Department 2800.

5 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[1.] Defeat the Terrorists and Neutralize the Insurgency

D E P A R T M E N T

O F

S T A T E

6 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[1.] Defeat the Terrorists and Neutralize the Insurgency

D E P A R T M E N T

O F

S T A T E

7 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[1.] Defeat the Terrorists and Neutralize the Insurgency

D E P A R T M E N T

O F

S T A T E

8 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[1.] Defeat the Terrorists and Neutralize the Insurgency

D E P A R T M E N T

O F

S T A T E

9 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[2.] Transition to Security Self-Reliance – Iraqi Security Forces

General Petraeus’s Remarks on Iraqi Security Forces: D • General David Petraeus, the commander of Multi-National Force-Iraq, presented an E assessment on Iraqi Security Forces (ISF) to Congress September 10-11. He P reported that ISF continue to grow, develop their capabilities, and shoulder more of A the burden of providing security for their country. Despite concerns about sectarian R influence, inadequate logistics and supporting institutions, as well as an insufficient T number of qualified commissioned and noncommissioned officers, Iraqi units are M engaged around the country. E N • Nearly 140 Iraqi Army, National Police and Special Operations Forces battalions T are conducting security operations, with about 95 of those capable of taking the lead in operations, albeit with some coalition support. O • 445,000 individuals are currently on the payrolls of Iraq’s Interior and Defense F Ministries. • Prime Minister Nuri al-Maliki has decided to increase the number of ISF further by S the end of this year, possibly by as much as 40,000. T A T E

10 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[2.] Transition to Security Self-Reliance – Iraqi Security Forces

D E P A R T M E N T

O F

S T A T E

11 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [2.] Transition Iraq to Security Self-Reliance – Iraqi Security Forces

D Ministry of Interior Forces Ministry of Defense Forces E TRAINED & COMPONENT P EQUIPPED COMPONENT OPERATIONAL A POLICE ~135,000 R ARMY ~163,500*** NATIONAL ~ 26,300 T POLICE AIR FORCE ~900 M OTHER MOI NAVY ~1,100 ~32,900 E FORCES TOTAL ~165,500** N TOTAL ~194,200* T Total Trained & Equipped ISF: O F ~359,700**** S * Ministry of Interior Forces: Unauthorized absence personnel are included in these numbers T ** Ministry of Defense Forces: Unauthorized absence personnel are not included in these numbers A *** Army numbers include Special Operations Forces and Support Forces T **** Does not include the approximately 144,000 Facilities Protection Service personnel working in 27 E ministries

Latest Data Available 12 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [3.] Help Iraqis to Forge a National Compact for Democratic Government Iraqi Prime Minister Says Civil War Prevented in Iraq: D • Hours before congressional hearings on the progress of the U.S. military buildup, E Iraqi Prime Minister Nuri al-Maliki addressed the Council of Representatives, saying P security had improved dramatically in the capital and Iraq was moving away from A civil war. Maliki gave an optimistic assessment of his country's progress since the R U.S. military buildup began in February, noting security gains had been made T across Iraq, insisting his forces needed more time to take over full security M responsibility from Coalition forces. E N Sadr Movement Says May Pull Out of Iraqi Coalition: T • The political movement loyal to cleric Muqtada al-Sadr said it may pull out of Iraq's O ruling Shia coalition unless the government improves security and makes political F progress. If Sadr's supporters withdrew they would leave Prime Minister Nuri al- Maliki's alliance with just 83 seats in the 275-seat Iraqi parliament, but he could still S be able form a small majority with support from Kurdish parties. T A T E

13 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [3.] Help Iraqis to Forge a National Compact for Democratic Government - Iraqi National Unity Government

President

D Deputy President Jalal Talabani Deputy President (F) = Female E Tariq al-Hashimi ‘Adil ‘Abd al-Mahdi * Vacant P Prime Minister

A Deputy Prime Minister Nuri al-Maliki Deputy Prime Minister

R Barham Salih Salam al-Zawba’i

T Minister of Displacement Minister of Minister of Minister of Minister of Culture Minister of Defense M Agriculture Communications & Migration Electricity Muhammad Tawfiq Abdul Qadir Muhammed Abd al-Samad Rahman * * Karim Wahid E Allawi Jasim Sultan Minister of Minister of Minister of Higher N Minister of Finance Minister* of Foreign Minister of Health Education Environment Affairs Education TKhudayyir al-Khuza’i Narmin ‘Uthman (F) Bayan Jabr Hoshyar Zebari * Abd Dhiyab al-Ajili

Minister of Human Minister of Industry Minister of Minister of Housing & Minister of Labor & Minister of Justice O Rights & Minerals Interior Construction Social Affairs Mahmud Muhammad Wijdan Mikha’il (F) F Fawzi al-Hariri Jawad al-Bulani Safa al Safi (acting) Bayan Daza’I (F) Jawad al-Radi

Minister of Minister of Science & Minister of Municipalities Minister of Minister of Oil Minister of Trade S Planning Technology & Public Works Transportation Husayn al- Abd al-Falah al- Ali Baban Ra’id Fahmi Jahid Riyad Ghurayyib * T Shahristani Sudani

A Minister of Water Minister of Youth & Minister of State for Minister of State for Minister of State for National T Resources Sports Civil Society National Dialogue Affairs Security Affairs E ‘Abd al-Latif Rashid Jasim Muhammad Ja’far Wijdan Mikha’il (acting) Akram al-Hakim Shirwan al-Waili Minister of State for Minister of State for Minister of State for Minister of State for Minister of State for Foreign Affairs Governorates Affairs Tourism and Antiquities Women’s Affairs CoR Affairs Fatin Abd al-Rahman Safa al-Safi Rafi Hiyad al-Isawi * * 14 Mahmud (F) UNCLASSIFIED UNCLASSIFIED September 12, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services – Financials from Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2

Apportioned Committed Obligated Disbursed

D Sector Apportion Last Week Current Change Last Week Current Change Last Week Current Change E Security and Law Enforcement $5,004.79 $4,967.72 $4,967.72 $0.00 $4,966.76 $4,966.76 $0.00 $4,811.80 $4,811.80 $0.00 P Electricity Sector $4,216.87 $4,140.99 $4,137.92 ($3.07) $4,020.62 $4,017.55 ($3.07) $3,444.61 $3,444.44 ($0.17) A Oil Infrastructure $1,724.70 $1,610.07 $1,610.07 $0.00 $1,559.89 $1,559.89 $0.00 $1,473.11 $1,473.11 $0.00 Justice, Public Safety and Civil $2,217.65 $1,265.71 $1,265.71 $0.00 $1,258.81 $1,258.81 $0.00 $1,102.55 $1,103.22 $0.68 R Society

T Democracy $998.35 $997.34 $997.34 $0.00 $997.34 $997.34 $0.00 $967.19 $967.19 $0.00

M Education, Refugees, Human $409.84 $399.76 $408.44 $8.68 $399.76 $408.36 $8.60 $371.19 $371.20 $0.01 E Rights, Governance Roads, Bridges and $333.60 $322.08 $322.08 $0.00 $320.82 $320.82 $0.00 $232.18 $232.18 $0.00 N Construction T Health Care $815.55 $770.68 $770.54 ($0.14) $761.54 $761.40 ($0.14) $683.85 $685.83 $1.98 Transportation and $456.72 $452.65 $452.58 ($0.07) $446.98 $446.91 ($0.07) $358.85 $358.86 $0.02 Communications O Water Resources and $2,115.63 $1,990.84 $1,990.55 ($0.29) $1,942.99 $1,942.70 ($0.29) $1,666.58 $1,666.80 $0.22 F Sanitation Private Sector Development $820.51 $807.85 $810.50 $2.65 $807.85 $810.50 $2.65 $794.22 $794.23 $0.01

Admin Expense (USAID, $210.60 $209.95 $209.95 $0.00 $209.95 $209.95 $0.00 $188.08 $188.08 $0.00 S STATE) T Total $19,324.82 $17,935.64 $17,943.40 $7.77 $17,693.32 $17,701.00 $7.68 $16,094.21 $16,096.95 $2.74 A IRRF II Construction - $10,250.83 $10,247.26 ($3.57) $10,015.96 $10,012.39 ($3.57) $8,848.57 $8,848.65 $0.08 T IRRF II Non-Construction - $6,687.46 $6,698.80 $11.34 $6,680.01 $6,691.26 $11.25 $6,278.45 $6,281.11 $2.66 E IRRF I Democracy - $997.34 $997.34 $0.00 $997.34 $997.34 $0.00 $967.19 $967.19 $0.00 IRRF I Total $2,473.30 $2,473.30 $2,473.30 $0.00 $2,232.3 $2,232.3 $0.00 $2,139.00 $2,139.0 $0.00

Grand Total IRRF I & II $21,798.12 $20,408.94 $20,416.70 $7.77 $19,925.62 $19,933.30 $7.68 $18,233.21 $18,235.95 $2.74

15 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity Overview

D Daily Electricity Supplied and Estimated Demand in Iraq Since January 2004

E Dai ly Supply 7-Da y A verage S upply Estimated D emand P 250,000 A R 200,000 T M 150,000 E N 100,000 T 50,000 O 0 3/ 6/ 9/ 12 3/ 6/ 1 3/ 6/ 9/ 12 3/ 6/ 9/ 12

F / 2 1 1 1 1 1/ 3 2 2 2 2 2 / / / 1 9 7 1 6 4 1 9 7 2 6 4 2 2 04 / / / 6 / / / / / 6 / / / 1 0 0 0 0 0 0 0 0 0 0 0 / / / 6 6 6 06 7 7 4 4 4 04 5 5 5 05 Date S T • Daily electricity demand September 5-11 was 21% above the same period in 2006. Daily supply A from the electricity grid was 22% above 2006; it met 55% of total electricity demand, compared with T 54% for the year-earlier period. E • Average hours of power via electricity grid after meeting demand from essential services: Baghdad 7.9 and nationwide 11.7. Year-ago levels were Baghdad 6.0 and nationwide 10.4. 16 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services – Provision of Essential Services Healthcare: D • Maliki agreed to dedicate $50 million to control the spread of cholera. The chief E inspector for the Ministry of Health, Dr. Adel Mohsen, denied September 6 that the P disease has spread to Iraq’s central and southern provinces. According to Dr. A Mohsen, cholera has not spread any further than Sulaimaniya and Kirkuk. Official R Iraqi estimates indicate that 2,000 cases have been confirmed. Dr. Mohsen also T stated that the hot weather in the southern provinces has helped contain the M disease to Kirkuk and Sulaimaniya, where the temperature is optimal for cholera E bacteria. N Oil and Electricity: T • Kamal Field al-Basri, senior economic advisor to Prime Minister Nuri al-Maliki and executive director of the Iraq Institute for Economic Reform told UPI September 6 O that Iraq’s oil and electricity sector needs $79 billion in investment through 2011. F He went on to say that the oil sector alone needs $56 billion, from pumping the oil to refining needed fuels. Al-Basri said that the optimal level for electricity is 21,000 S megawatts and $23 billion would be needed to meet that. Iraq’s installed T generation currently has a potential capacity of 11,000 megawatts. A T E

17 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services – Provision of Essential Services Petrochemical: D • Dathar al-Khashab, director-general of the state run Midland Refineries Co., E reported September 8 that Iraq will require up to $25 billion in investment to P expand its refining capacity over the next five to seven years. Reuters reported A that Khashab also said it would take approximately $1.5 billion to expand existing R refineries. Additionally, plans are underway for the construction of a new 300,000 T barrels per day (bpd) refinery in Nasisrya and three 150,000 bpd refineries in M Amara, Kerbala, and Kirkuk. E N T

O F

S T A T E

18 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services – Government Capacity

Basrah: D • The Basrah Provincial Reconstruction Team (PRT) reports that the Resource E Statement for 2007 (collating donor and Iraqi projects) is nearing completion. It is P designed to focus the Council on greater transparency in their work and allow for A more effective prioritization of that work. R T Kirkuk: M • The Kirkuk PRT reported during the period of 24-30 August that the electricity situation E improved slightly, as regional power plants operated normally. The national grid supplied N 16 hours per day to the Province, with households seeing 6-8 hours per day, still less than T the recent averages of 10-12 hours per day.

O F

S T A T E

19 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [5.] Help Iraq Strengthen Its Economy – Oil Update and Job Creation Oil Update: D • Crude oil price averages in world markets for the week ending August 31 closed with the E following prices: P – Basrah Light at $70.552/ barrel – Dated Brent at $74.846/barrel A – WTI Cushing at $75.945/ barrel – Oman/Dubai at $70.29/barrel R T M Employment Update: E N Iraqis Last Iraqis This T Employment Program Week Week % Change

Gulf Region District (GRD) (Includes MILCON/OMA) 23,752 25,487 7.30% O F US Agency for International Development (USAID) 81,202 72,092 -11.22% Commander’s Emergency Response Program (CERP) 3,519 3,519 0.00% S Multi-National Security Transition Command-Iraq (MNSTC-I) T 6,321 4,703 -25.60% A Grand Total 114,794 105,801 -7.83% T E

20 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy - Banking Sector Central Bank’s US Dollar (USD) Currency Auction: • The following table shows volume sold of and exchange rates for USD in the Iraqi currency auction since April. Since D September, the Central Bank of Iraq (CBI) has slowly appreciated the dinar, as suggested by the IMF, in an effort to rein in E galloping inflation. There are signs that this effort has begun to bear fruit, as year-to-date inflation is 4.8% and the year-on- year inflation rate was 30.2% in July. This decline in the rate of inflation may be temporary, however, as the CBI has P slowed its appreciation of the currency and the rate of inflation (particularly for energy prices) typically picks up in the A second half of the year. R Central Bank of Iraq USD Currency Auction: September 3, 2006 – September 11, 2007 T $100.0 1,500

M $90.0 1,450 E $80.0 N $70.0 T 1,400

ns) $60.0 Rate lio e g n (Mil

$50.0 1,350 a d h l O o D S

$40.0 D Exc I S N F U 1,300 $30.0

S $20.0 1,250

T $10.0

A $0.0 1,200

9 5 8 6 6 5 2 9 4 9 5 8 5 0 6 3 0 6 3 1 7 0 11 2 8 9 7 4 1 2 6 2 9 5 3 6 3 0 7 2 0 8 3 2 2 3 1 2 3 1 1 2 t 2 10 2 v 1 c 1 1 2 1 2 2 b 1 r 1 2 r r 8 1 23 3 y 1 2 e 1 1 y 1 t t 2 t t r p p c t 1 28 c c c n n b 20b 27 r -2 r p p r r y y n e l y y 1 y 2 y s s e p ct c ct - e e b a a p p pr a ay 2 n ne l l l l u us us b T e e O No ov De a a Fe Ma A A Ma u une u u u u gustu O O O - De - - M 14 - - A A M une u Ju J J J J g g g g m Se - - - 15 D D Jan- J - J Fe Fe Fe r -M A - - Ma - M -J J -J - u u u u u e - - S - S 6 - - 4 - N v 9 - - - - - 7- 28 7 2- - 6 - 0 - Ju - J - A t 2 1 8 7 3 30 4- 1- r 3 0- 3 7 - 1 1- 7- 4- A A p 3 v 8 o 2 6 1 2 6 1 2 28 r Ma 22 r p 1 1 24 y 9 1 3 6 1 y 8 1 1 2 - - A - - p 6 13 21 p 19 N v c n b b r r r r y y y e 26 l y - A e p p e ct t 1 b b A y 2 n l y y y 4 2 8 O c ct No ov o an Fe Ma Ma p Ma a ne e 20e l l l 31t 7 1 - S E Se e e S N N De ec 13ec 20Ja an an J Fe Fe Fe Ma A Ap Ap Ma Ma Ma u Ju y O O J J M n Ju l s t S S D D J Ju un Ju Ju Ju s st 2 st 2 3 J Ju Ju u u u r ugu g g g e A Au Au Aumb te

US $ Sold (Weekly Avg) The New Iraqi Dinar (NID) exchange rate line is calculated as a weSepekly weighted average (NID/USD)

21 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy – Securities Markets

Trading of Iraqi Bonds on the International Secondary Bond Market: • The following table shows the daily bond resale price and yield on Iraqi bonds issued January 20. The bonds were originally issued to D approximately two-thirds of Iraq’s commercial creditors as part of a debt exchange arrangement as per Paris Club terms. Iraq’s commercial E debt was approximately $22 billion before the debt-swap arrangement. The bonds, which are not yet rated, will mature in 2028. Iraqi Commercial Bond Sales P June 15, 2006 - September 7, 2007 A R $80.00 12.00%

T $70.00 M 10.00% E $60.00

N 8.00% D

$50.00 e g US T a t in e rcen

ic $40.00 6.00% r Pe

O d l Yie

F Bond P $30.00 4.00% S $20.00 T 2.00% $10.00 A

T $0.00 0.00%

n n l l g g p p t v v c c n n b b r r r y y y n n l l g g p u u u u u u e e c ct ov o o e e a a e e a a p pr a a a u u u u u u e E J J -J -J O J J A J J -J -J - - 3 7 -A -A -S - -N -N -N -D -D - - -F -M -A - -M -M - - 2 6 -A -A 1 2 7-S 5-O 2 6 0 4 8 8-F 2 8-M 2 5 3-M 1 2 9 6-S 15 29 10 24 21 19 1 3 1 2 11 25 2 2 19 17 31 14 28 23 Trading High = $73.98 (January 24)

Trading Low = $64.66 (August 30) 22 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy – Economic Events

Iraq Expected to See Rise in Economic Growth for 2007: D • Speaking in Baghdad, U.S. Coordinator for Economic Transition Charles Ries said E that Iraq’s economy is likely to grow more than 6% in 2007. Ries said that the P economy is underperforming, though, due to an inadequate supply of electricity, A weakness in the oil sector, capacity constraints, and a lack of foreign and private R investment. T M President Talabani Opens Business Fair in Sulaymaniyah: E • Iraqi President Jalal Talabani opened a business fair in Sulaymaniyah region N August 6, saying that the annual event played an important role in stimulating T reconstruction projects in the northern Kurdish provinces and that the fair was a symbol of Iraq’s national unity. O • Over 276 Iraqi and international firms, many from Turkey and Iran, took part in the F fair, offering a range of products and services from cars to telecommunications.

S T A T E

23 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy – Crude Oil Production

2.80 D 2007 Iraqi Oil Ministry Goal: 2.1 MBPD

E 2.40 2.32 P 2.22 2.24 2.07 2.10 2.08 A 2.06 2.04 2.03 2.00 y

R a D r

T e

P 1.60 s l e

M r r a

E B 1.15

of 1.20 N s ion ill

T M 0.80 O F 0.40

S 0.00 -8 5 2 9 t 5 2 2 9 -1 2 2 s 1 19 26 r - 2 9 6- 3- u 3- 0- e 3 ly 1 2 6- 1 2 r T u y g st t mb e J ul ly ly u u st s e b J u A g u t m Ju J - g gu ep e A 0 Au u u S pt 3 A A - e ly S u 27 T J st u ug E A

Production Ta rget

24 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy – Crude Oil Export

Re ve nu e ( US $ B) Project ed Ex por ts ( M BP D)

D 2.40 E $4 .00 P A $3 .50 1. 76 R 1. 69 1.80 1. 64 T 1. 55 1. 58 1. 55 $3 .00 y 1. 50 1. 50 M a 1. 44 1. 45 1. 47 D

1. 30 ) E $2 .50 s n s per el

N r r 1.20 illio a $2 .62 B

$2 .00 ( T B D

$3. 49 S $3. 39 U ons of

i $3 .05

l $2. 96 $1 .50

O l i $2. 75 $2. 75 F M $2 .45 $2. 46 0.60 $2. 19 $2. 11 $1 .89 $1 .00 S $0 .50 T $0. 76 A T 0.00 $0 .00 Oct-06 Nov-06 Dec- 06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Ju n-07 Ju l-07 Aug-07 Sep-07 E • 2006 Revenue Estimate: $31.3 Billion • 2007 Revenue Estimate: $23.2 Billion (Year to Date) 25 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [5.] Help Iraq Strengthen Its Economy – Total Critical Refined Product Supplies Dom e stic P rodu ction Imp ort

D 100 %

E 14 % 19% P 23% 30% A 80% R s e T i uppl S l

M e u 60% E y F eekl

N W f e o

T ar 86 % h 81% S 40% f 77% o

e 70% g a

O t cen r

F e P 20% S T

A 0% T Diese l Kero sene Gaso line LPG E Note: This is a daily average for September 3 – 9 • Diesel: 14.4 ML supply of 24.5 ML target • Gasoline: 15.1 ML supply of 23.1 ML target • Kerosene: 10.1 ML supply of 11.1 ML target • LPG: 2,420 tons supply of 5,100 tons target 26 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[5.] Help Iraq Strengthen Its Economy – National Stock Levels

Ju l-07 Au g -07 Se p-07 Go a l

D 25 E P A 20 R T M E 15 N ays T D 10 O F

5 4 4 S 3 3 3 2 2 22 T 111 A 0 T Diese l Kero sen e Gaso line LPG E • The goal is to have on hand 15 days supply of all refined products, calculated on the basis of maximum consumption over the year and not adjusted for seasonal variation. The numbers given above are monthly averages. 27 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [6.] Help Iraq Strengthen the Rule of Law and Promote Civil Rights– Rule of Law President Talabani Opposes Execution of Saddam Aide: D • President Jalal Talabani said September 7 during a press conference in E Sulaymaniyah that he would not sign the execution order of a top Saddam aide P whom he personally had “provoked” to rebel against the executed dictator. If the A approval of his three-member presidency is sought by the Iraqi supreme court, R Talabani said he would refuse to sign the order of Sultan Hashim al-Tai (senior T officer who became defense minister during Saddam’s regime). M E New Iraqi Corruption Fighter Named: N • The Iraqi government has named the deputy head of the country’s anti-corruption T body to replace his boss, who is accused by a parliamentary committee of corruption himself, officials reported September 6. The new chairman of the Public O Integrity Commission will be Moussa Faraj. A government official said the outgoing F chairman, Radhi al-Radhi, had requested retirement and that Prime Minister Nuri al- Maliki accepted. The official also said that Faraj will replace Radhi on a temporary S basis until he is approved by parliament permanently to the new post. T A T E

28 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[7.] Increase International Support for Iraq – Developments

Britain's Stance on Iraq Consistent with that of U.S.: D • Prime Minister Gordon Brown’s spokesman said the general approach of the U.S. E and the United Kingdom was entirely consistent and that decisions on troop levels P would be based on conditions on the ground and the assessment of the military. A Brown had “very cordial and constructive” talks with President Bush September 10. R T UN Appoints Mistura as its Top Envoy in Iraq: M E • Swedish Diplomat , who has worked at the U.N. for 30 years, was N appointed September 5 as the new UN envoy to Iraq. De Mistura served as the T U.N.'s deputy envoy to Iraq in 2005 and 2006, and replaces Pakistani diplomat Ashraf Qazi, who was named September 4 as the top U.N. representative to . O Both of Secretary-General Ban Ki-moon's appointments have been agreed upon by F the Security Council.

S T A T E

29 UNCLASSIFIED UNCLASSIFIED September 12, 2007

[7.] Increase International Support for Iraq – Developments

Iraqi Vice President Thanks Kuwait for its Full Support to Iraq: D • Iraqi Vice President, Dr. Adel Abdul Mahdi, thanked Kuwait during a September 10 E visit for its full support to Iraq, which he said would help bring about a successful P political process in Iraq and guarantee stability and security in the neighboring Arab A country. Mahdi described the visit as "excellent", noting that he had heard from his R T Highness, the Amir of Kuwait Shaykh Sabah al-Ahmad al-Jaber al-Sabah "wise and M excellent words of interest to Kuwait, Iraq, the region and Muslims in general". E N T

O F

S T A T E

30 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [7.] Increase International Support for Iraq – Contributors to Iraqi Stability Operations

D 25 Countries with forces in Iraq (in addition to US) E P A Albania Denmark Korea Poland R Armenia El Salvador Latvia Romania T Australia Estonia Lithuania Singapore M Azerbaijan Georgia Macedonia Slovakia E Bosnia-Herzegovina Japan Moldova Ukraine N Bulgaria Kazakhstan Mongolia UK T Czech Republic

O

F TOTAL ~ 11,732 Forces *Note: Fiji participating as a part of the UN mission in Iraq. S T 33 Countries and NATO* A (including US) T E Support Iraqi Stability Operations

*33 includes the 25 countries listed above, the US, Fiji, and seven NATO, non-MNF-I countries: Iceland, Italy, Netherlands, Portugal, Slovenia, Turkey

31 UNCLASSIFIED UNCLASSIFIED September 12, 2007 [8.] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments Iraqi Insurgents Threaten to Kill German: D E • An insurgent group in Iraq posted a videotape September 10 that showed a P German hostage who has been held for more than six months and threatened to kill A him unless Germany withdrew its troops from Afghanistan within ten days. Sinan R Krause and his mother Hannelore disappeared in Iraq February 6. T M E N T

O F

S T A T E

32 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Iraq Weekly Status – General Information

D E • This brief draws from multiple sources. References are cited on the P A following pages. R T M • Please forward all questions and/or comments to: E N [email protected] T

O F

S T A T E

33 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Notes and Source Citations (1 of 3)

Slide 5: D – Report to Congress - Gen Petraeus Testimony – September 10-11 E Slide 6: P – Report to Congress - Gen Petraeus Testimony – September 10-11 A Slide 7: – Report to Congress - Gen Petraeus Testimony – September 10-11 R Slide 8: T – Report to Congress - Gen Petraeus Testimony – September 10-11 M Slide 9: E – Report to Congress - Gen Petraeus Testimony – September 10-11 N T Slide 10: – Report to Congress - Gen Petraeus Testimony – September 10-11

O Slide 11: F – Report to Congress - Gen Petraeus Testimony – September 10-11

Slide 12: S – DoD Input to Iraq Weekly Status Report September 11, 2007

T Slide 13: – http://www.baltimoresun.com/news/world/iraq/bal-te.iraq11sep11,0,1010756.story A – http://www.reuters.com/article/topNews/idUSL1126811620070911?src=091107_1312_TOPSTORY_petraeus_under_fire T E

34 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Notes and Source Citations (2 of 3)

Slide 14: – NEA Political Section, [email protected] D E Slide 15: P – ITAO Weekly Report, September 12, 2007 A Slide 16: R – POC Department of State, NEA-I ASSIST, 202 647-9815 – The chart shows average daily power production in megawatt hours (MWh). 120,000 MWh goal equates to 20 hours at 6000 MW average supplied load or 24 T hours at 5000 MW average supply load. M Slide 17: E – September 6, 2007 – (United Press International) http://www.iraqupdates.com/scr/preview.php?article=21476 N – September 6, 2007 – (Voices of Iraq) http://www.iraqupdates.com/scr/preview.php?article=21479 T Slide 18: – September 10, 2007 – (Reuters) http://www.iraqupdates.com/scr/preview.php?article=21333

O Slide 19: – PRT Weekly Summary August 24-30, 2007 – (Basrah, Kirkuk) F Slide 20: – Oil Prices are sourced from Bloomberg S Employment Update: – Information regarding the Employment Update was sourced from the ITAO Weekly Report – September 12, 2007. T – CERP has not reported figures for some time. Until they report accurate data, the number will remain at 0. A – PCO will be reporting on a bi-weekly basis. Slide 21: T – Department of State, NEA-I-ECON, 202-647-9885 E Slide 22: – Iraqi Bond Prices are sourced from Bloomberg

35 UNCLASSIFIED UNCLASSIFIED September 12, 2007

Notes and Source Citations (3 of 3)

Slide 23: – September 10, 2007, http://www.iraqupdates.com/p_articles.php/article/21587 D – September 10, 2007, http://www.iraqupdates.com/p_articles.php/article/21525 E Slide 24: P – Department of State, NEA-I-ECON, 202-647-9885 A Slide 25: R – Department of State, NEA-I-ECON, 202-647-9885 T Slide 26: M – Department of State, NEA-I-ECON, 202-647-9885

E Slide 27: N – Department of State, NEA-I-ECON, 202-647-9885 T Slide 28: – September 7, 2007 - AFP - http://news.yahoo.com/s/afp/20070907/wl_mideast_afp/iraqtrialexecutiontalabani – September 6, 2007 - AP - http://news.yahoo.com/s/ap/20070906/ap_on_re_mi_ea/iraq_corruption;_ylt=AvQz2wfFYhTsA492Mpta1o4LewgF O F Slide 29: – http://www.africasia.com/services/news/newsitem.php?area=mideast&item=070911161536.brm8vm95.php – http://africa.reuters.com/wire/news/usnN05226200.html S Slide 30: T – September 10 OI A Slide 31: T – Source: DOD Input to Weekly Status Report, updated bi-weekly. E Slide 32: – September 11, 2007 - http://www.iraqupdates.com/p_articles.php/article/21609 – September 10, 2007 - http://news.yahoo.com/s/ap/20070911/ap_on_re_mi_ea/iraq_germany_hostage_video_1 36 UNCLASSIFIED